A Dubai-based private equity firm jumped into the senior living market in a big way, acquiring a group of six properties for a total purchase price over $180 million. GFH Capital, a subsidiary of GFH Financial Group, will own 91% of the portfolio, while a Washington, D.C.-based real estate investment firm, Madison Marquette, is acquiring another 6%. Two of the three operating partners GFH has selected to manage the communities, JEA Senior Living, Senior Resource Group and Independence Village, have also each co-invested in their respective properties.
The acquired portfolio is geographically spread out in California, Washington and Michigan, and is currently 93% occupied, on average, providing a combination of independent living, assisted living and memory care services. Rents are on the higher end, and most of the properties have also been recently renovated. Upon completion of the deal, that will bring the total U.S. real estate transactions made by GFH over the past five years to more than $1 billion.